YearSalaryCPI1969$20,52036.71979$43,26572.61989$85,529124.01999$135,250166.62009$170,844214.5Your father tells you he earned a salary of $45,000 a year in 1980. This salary figure is the:
A. value of his salary adjusted to 2009 dollars.
B. nominal value of his salary in 1980.
C. value of his salary adjusted for inflation.
D. real value of his salary in 1980.
Answer: B
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Kirk consumes normal goods. If Kirk's income decreases and the prices of all goods remain unchanged, in his new consumer equilibrium, his marginal utility from each good will ________ and his total utility will ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
What is autarky?
What will be an ideal response?
Two economists from Ohio University estimated that the demand curve for kerosene in Indonesia was such that a 10 percent increase in the price reduced the quantity demanded by 2.2 percent and that a 10 percent increase in the price of electricity increased the demand for kerosene by 1.6 percent. This indicates that (i) the demand for kerosene is price inelastic and (ii) kerosene and electricity
are substitutes. Which of these two statements is correct? a. i and ii b. i not ii c. ii not i d. neither i nor ii
In the short run, open-market purchases
a. increase investment and real GDP, and decrease nominal interest rates. b. increase real GDP and nominal interest rates, and decrease investment. c. increase investment and nominal interest rates, and decrease real GDP. d. decrease investment, nominal interest rates, and real GDP.